NewsIPOJayesh Logistics Launches Rs 28.63 Crore IPO: A Modest Start for the Indo-Nepal Logistics PlayerJayesh Logistics Launches Rs 28.63 Crore IPO: A Modest Start for the Indo-Nepal Logistics Player
Jayesh Logistics, specializing in Indo-Nepal cargo services, has opened its IPO on the NSE SME platform. The company aims to raise Rs 28.63 crore by offering 23.47 lakh fresh equity shares at a price band of Rs 116-122 per share. The IPO closes on October 29, with listing scheduled for November 3. Jayesh Logistics reported strong financial growth with a 27% revenue increase to Rs 112 crore and a 128% profit after tax growth to Rs 7.20 crore. The company plans to use the IPO proceeds for purchasing side-wall trailers, working capital, and technology upgrades. Post-IPO market capitalization is expected to be Rs 106 crore. The current grey market premium stands at Rs 4.
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Jayesh Logistics, a company specializing in end-to-end cargo movement services across the Indo-Nepal corridor, has launched its Initial Public Offering (IPO) on the NSE SME platform. The IPO, which aims to raise Rs 28.63 crore, offers investors an opportunity to be part of a growing logistics firm with a strategic focus on cross-border operations.
IPO Details
| Particular | Details |
|---|---|
| Issue Size | Rs 28.63 crore |
| Fresh Equity Shares | 23.47 lakh |
| Price Band | Rs 116 - Rs 122 per share |
| Closing Date | October 29 |
| Listing Date | November 3 |
| Listing Platform | NSE SME |
| Grey Market Premium | Rs 4 |
Company Performance
Jayesh Logistics has demonstrated strong financial growth:
| Metric | Value |
|---|---|
| Revenue Growth | 27.00% |
| Revenue | Rs 112.00 crore |
| Profit After Tax Growth | 128.00% |
| Profit After Tax | Rs 7.20 crore |
| Return on Equity | 56.80% |
| EBITDA Margin | 15.00% |
| Debt-to-Equity Ratio | 1.61 |
IPO Proceeds Allocation
The company plans to utilize the IPO proceeds for various purposes:
| Purpose | Amount (in Rs crore) |
|---|---|
| Side-wall Trailers Purchase | 8.80 |
| Working Capital | 11.20 |
| Technology Upgrades | 0.70 |
Market Valuation
Post-IPO, Jayesh Logistics is expected to have a market capitalization of Rs 106 crore.
Investor Considerations
While Jayesh Logistics shows promising growth and profitability metrics, investors should note the high debt-to-equity ratio of 1.61. The modest grey market premium of Rs 4 suggests tempered expectations for listing gains.
The company's focus on the Indo-Nepal corridor presents both opportunities and risks, as it may be subject to geopolitical and economic factors affecting trade between the two nations.
Potential investors should carefully review the company's prospectus and consider their risk appetite before making an investment decision in this SME IPO.
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